5 Checkpoints Before You Invest an Apartment

Every time you see a new and lush property, don’t you instantly get attracted to it? Almost all of us look to buy a good property in a good location having good facilities. However, not all that looks good is worth a buy.

If you keep a constant tap on the recent property deals and the risks associated with it, you would be cautious every time you are looking to invest in a property. If you are not aware of the property deals and the possible risks associated with it, then it’s high time you check before you make up your mind to invest in one.

We agree that a property is worth millions, so it can be a great investment too. It’s an asset that every one of us should have. The Indian government has been trying to invest in building houses for one and all. However, they have failed to keep up the promise owing to numerous reasons. Some of us, who are lucky enough and can afford to buy an apartment, should always keep some checkpoints in mind.

There are many checkpoints, but we are mentioning 5 vital points out of these:

Check#1: Check the price of the property

Analyze your salary slab and the savings you have. Next, check all the resources that are available estimate your affordability to buy a property. Now, after you have cross-checked your resources, you need to look at the price of the property you have chosen along with the facilities and amenities it offers.

Ask for the price of the property and compare it with other neighboring ones. Look around and take a thorough survey. Avoid brokers and middlemen and contact the dealers and realtors directly.

Check#2: Buyer-seller agreement

In case you decide to book a flat, you would be asked to make a down payment. This is usually 10% of the total amount and no bank or investment firm would pay you this sum. You need to arrange for this sum.

  • You must get a seller-buyer agreement done where the entire deed of your property would be mentioned. Read the deed very carefully.

  • Check whether your property is A-Khata or B-Khata. Buy only A-Khata properties as they have been approved by the Govt. of India.

  • Once you have got an understanding of the Khata status, understand if it is a disputed property. Certain properties in Bangalore are still disputed and the developers have not received the possession of it. In case you fall into that trap, your entire investment will go in vain.

  • You all need to understand that your property dealer may put in additional clauses inside your deed, which if you do not read carefully, you may be taken in for a good toss. These clauses could be hidden costs like market conditions and the rise in price due to several unseen factors.

If you are not careful enough about the things mentioned in the deed, you may end up giving more money by the end of the project, by the time you gain the possession of your apartment.

Check#3: Location and its surroundings with upcoming projects

We all are basically looking to get the best of amenities, facilities and local surrounding of the property we select. It is important that you check what kind of neighbors you have and the kind of facilities like water, electricity and other basic needs that are being provided by your dealers. Also, always check the sewer storage and the other plumbing details to ensure no leakage is happening.

In case there are properties getting constructed in the neighborhood, you need to figure the status of those as well. After all, it is an investment of the lifetime and you need to ensure you are in good hands surviving with good neighbors.

Check#4: Date of possession of your apartment

These days many residential construction projects are delaying in giving the possession than their stipulated dates. Many such instances have been reported where the builders have fled without completing the projects and returning the money. Once your dealer absconds from the site without completing the project, you can neither do anything about it nor spend long years in filing a case.

So, do your homework well, study the history of your dealers and only then go and invest.

Check#5: Banks and other financial institutes that will give you the loan

The price of an apartment is so high, that it is not possible for most of us to afford through our personal savings. You need to borrow from a bank or a legalized financial agency that will support your at least 70-80 percent of the entire sum.

Cross check with your legal advisor about the banks and financial agencies that are tied up with your builder. If it is a centralized bank or an internationally reputed bank, then you are in safe hands. Also, LIC is one good funding partner. If your builder has tied up with one or more legalized financial agencies, you are in safe hands. Else you may have to pay more interest that can go heavy on your pockets.

Conclusion:

Buying a property is a good thing of course. Everyone needs a shelter which is safe and secure. All of us are saving and working our guts out to create a haven for ourselves. However, to make sure your investments and hard-earned money does not go in vain, kindly go through the checkpoints we mentioned and also read more about the safety measures to be taken before you buy any apartment or a property.